TB MC Qu. 10-73 (Algo) Lattimer Company had the following results... Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (16,800 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income Per Unit $ 12.00 Annual Total $ 201,600 1.50 25,200 4.00 67,200 1.00 16,800 5.50 92,400 1.00 16,800 1.40 23,520 $ 3.10 $ 52,080 A foreign company offers to buy 5,600 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 26,800 units. If Lattimer accepts this additional business, the special order will yield a: